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UK Modern Slavery Act 2015: Guidance for Employers

I​n October 2015, a new provision arising under section 54 of the Modern Slavery Act 2015 comes into effect and applies to commercial organisations that carry on business or part of their business in the United Kingdom with a turnover of £36 million or more.

It is important to note that turnover is determined on the basis of worldwide turnover and not UK turnover alone.

Compliance Requirements

An organisation will need to publish either (i) a statement of what steps it has taken to ensure that slavery and human trafficking are not taking place in any of its supply chain or any part of its business or (ii) a statement that it has taken no such steps.

The onus on an organisation therefore appears high. To comply with the first requirement noted above, an organisation should consider conducting audits on all of its supply chains, along with all parts of its business, and if a statement is made that no such assessing steps have been taken, the question will likely be, why not? The potential ramifications are significant for an organisation that confirms it has not taken steps to ensure that slavery and human trafficking have been monitored.

The statement cannot be hidden and must be published on the organisation's website, including on its home page.

The key essentials to incorporate in the statement include the following:

The organisation's current structure, business model and supply chain relationships.

The organisation's policies relating to modern slavery.

The audit undertaken to assess whether modern slavery has taken place.

Year-on-year progress reports detailing how the organisation assesses its annual progress on identifying and minimizing risk.

Penalty

Mandatory publishing of an annual statement will need to be documented with evidence of steps taken before any such statement can be made. Commercial organisations that do not comply with this requirement are subject to civil proceedings by the Secretary of State to compel them to comply.

What This Means for Employers

Seek assistance in carrying out audits of your business and your supply chain relationships.

Raise the issue with your board because prompt attention may assist in preparing a thorough and more accurate annual statement will be.

List your business and supply chain relationships, which may be substantial.

Seek training on how to fulfill compliance requirements.

Receive assistance with developing a tailored programme to ensure compliance.